Knowing Who to Call to Close More Loans image

Usherpa Blog - Knowing Who to Call to Close More Loans

7/16/2021 - by Dan Harrington in CRM Essentials
If you want to do more business today and in the coming purchase money mortgage market, you’re going to have to get good at picking up the phone and reaching out to prospective borrowers.

Many loan officers shy away from this for a couple of reasons. First, we have been enjoying easy refinance business for so long that it’s been easier to just answer emails than pick up the phone. In addition, cold calls are riddled with rejection, and nobody wants that.

But what if the loan officer didn’t have to make cold calls?

Of course, this suggests that the LO would have to know who was in the market for a loan before they picked up the phone. In the past, this was almost impossible to do, but that’s not true anymore.

What the data can tell us about borrowers in the buy zone

Recently, Usherpa contracted with a leading data analytics company to review 6 million mortgage loans closed by Usherpa CRM users over a 30-year period to find clues in the data pointing to borrowers in the buy zone.

The result was a new algorithm that is now the logic behind a new kind of UsherpAlert. Every user of Usherpa’s CRM knows that UsherpAlerts are the automated notifications the system sends out to let LOs know that they have a reason to make contact with a prospective borrower. In the past, these have been useful reminders about birthdays, anniversaries and other special events, provided along with the borrowers personal information to customize any resulting conversation.

But our new UsherpAlerts go way beyond anything that’s ever been available to users of any industry CRM. The new Opportunity Alerts are triggered when a borrower in the user’s database shows signs of being ready to talk about a new mortgage loan.

Instead of making another cold call, Opportunity Alerts allow LOs to reach out precisely when the prospective borrower is looking for the information they can provide.

Quantifying the difference Opportunity Alerts offer

But how much better are these alerts than what LOs have had in the past? We asked that question, too. To test the new functionality, we took a point in time approach to backtesting, looking at what the new analytics would score borrowers in the database as of January 1, 2019, and then checking to see if borrowers who scored high had in fact applied for a new mortgage or refinance after that date.

The model found that borrowers in the test portfolio who scored high had a 360% higher likelihood of refinancing and a 297% higher chance of applying for a new purchase money mortgage.

For the people in the back: LOs are 3 times more likely to get a loan application from a prospect they call based on a Usherpa Opportunity Alert.

This won’t be all that surprising to long-term users of Usherpa’s CRM and mortgage marketing automation. After all, many of them already know about the 2019 study by NuView Analytics Inc. In an independent review of 19,500 LOs over a 13 year period, the analysts examined overall loan production of Usherpa users compared to non-users. Usherpa users averaged 48% more loans per month than non-users.

Usherpa users pick up the phone. It’s easy for them because UsherpAlerts give them a reason to talk to their prospects and our new Opportunity Alerts increase the odds that they are talking to someone who has been hoping they would call.

Find out more about how you can close more loans than your competition by calling us today.

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